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Financial Planning Tips for First-Time Home Buyers

Financial Planning Tips for First-Time Home Buyers

Want to settle in a house and make it a home? Whether you want to start a new life or improve your family’s quality of life. Buying your first house is always a chore, filling out trivial paperwork, browsing listings, and dealing with brokers. All can be made easier if you follow these tips, curated by a real estate professional and expert.

Maintain your Credit Score

Having a good credit score is important because it opens many opportunities in terms of financial credit. Improve yours by reducing credit card usage and paying bills on time. Track it for free with banks or credit monitoring services to ensure your credit status is checked.

Optimize your Budget

Down payment for the house and other expenses such as taxes, insurance, and maintenance costs. Setting aside 1-3% of the property’s value every year for its maintenance is advisable to avoid such shocks. This buffer can also assist you in bidding wars in which you may find yourself.

Need and Wants

It is important to scout the place both during the day and at night to get a feel for the environment. List down the things you want in your house, what you need and what you want. Think of what you like or dislike in your current living conditions.

Manage your finance

Show lenders you're responsible. A consistent income of at least 2 years and proper documentation is highly desirable. Collect bank statements for 2 months and refrain from taking on new credit to create a favorable image of your financial situation.

Plan out Your Mortgage

Secure a mortgage and Compare lenders. Check the interest rates and repayment terms of the various lenders, including banks, credit unions, etc. Read customer reviews to determine who offers a hassle-free process. Do not only look at the interest rates, but also the other charges that are likely to be charged. Such as late payment fees, closing costs, and early payment charges. Your current bank may have a similar deal, give them a visit as well.

Get Pre-Approval

Assemble papers for a pre-approval letter to demonstrate your credit limit. This is different from a prequalification. Pre Approval will make you a better buyer and make the loan process much easier. Pre Approval should ideally be valid for at least 120 days. After getting preapproved, one should remain financially responsible.

Getting Down Payment Assistance

Check out programs available on the local, regional, and national levels for first-time buyers. These programs may have income restrictions and maximum sales prices for the house. They may provide affordable low-interest loans, forgivable loans, or even grants to ease the down payment burden. Discuss with your loan officer which of the programs you can apply for.

Hiring Professional

Once you have secured your financing, the next step is to look for a real estate agent. Their local knowledge assists you in pricing, identifying potential problems, and bargaining for the best price. Ask your friends and family for recommendations, and then interview the agents to get the right one.

Make a contract

When making an offer, it is advisable to include contingencies that allow you to back out of the deal. Such as an unfavorable home inspection or mortgage approval. These terms are in a signed contract to enable you to back out and get your earnest money deposit back if needed.

Partner with Jeevikka Shah Realtor, your Personal Real Estate Expert

Jeevikka Shah Realtor understands the unique challenges of buying your first home in Vancouver’s competitive market. As a realtor with over a decade's experience, she'll guide you through every step, from budgeting and pre-approval to negotiation and closing. So, what are you waiting for? Hire your personal real estate broker at Metro Vancouver.

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